Nigeria’s Forex Inflow Hits $1.3 Billion in February: CBN Data Reveals

Nigeria’s foreign exchange inflow surged to $1.3 billion in February 2024, according to data released by the Central Bank of Nigeria (CBN).

The increase represents an increase from the $300 million recorded in January.

Mrs. Hakama Sidi Ali, the Acting Director of Corporate Communications at the CBN, highlighted the growth during a press briefing in Abuja.

Ali noted that the trend continued into March, with heightened investor enthusiasm for short-term sovereign debt following adjustments to benchmark interest rates.

Notably, government securities issuances witnessed oversubscription, with foreign investors accounting for more than 75% of bids during auctions conducted on March 1 and 6, 2024.

The surge in forex inflow reflects a positive response to the CBN’s strategies aimed at curbing inflation, stabilizing the exchange rate, and bolstering confidence in the banking system and economy.

Governor Olayemi Cardoso’s detailed plan, articulated during the recent Monetary Policy Committee meeting and discussions with foreign portfolio investors, has instilled optimism and bolstered market sentiments.

Governor Cardoso expressed satisfaction with the results, attributing the success to the clarity of the CBN’s strategy and the market’s understanding of the measures taken to boost reserves and enhance liquidity.

He reiterated the central bank’s commitment to ensuring market functionality, liquidity, and investor confidence, underscoring the importance of sustained efforts to uphold Nigeria’s economic stability.